Adani Ports completes Rs 12,000 cr deal for 75% stake in Krishnapatnam

The acquisition will accelerate APSEZ's stride towards 500 MMT by 2025 and is another step in implementing its stated strategy of cargo parity between west and east coasts

In a bid to increase its footprint in the country’s port sector, Adani Ports and Special Economic Zone Limited (APSEZ) today announced the completion of acquisition of Krishnapatnam Port Company Ltd (KPCL) for an enterprise value of Rs 12,000 crore.

This will result give APSEZ a controlling stake of 75 per cent in KPCL from the CVR Group and other investors.

The port is expected to generate an earnings before interest, taxes, depreciation and ammortisation  (EBITDA) of approximately Rs 1,200 crore in FY21, resulting in an acquisition EV/ EBITDA multiple of 10x.

KPCL is a multi-cargo facility port situated in the southern part of Andhra Pradesh a state, which has the second largest coastline in India.  

This acquisition will accelerate APSEZ’s stride towards 500 MMT by 2025 and is another step in implementing its stated strategy of cargo parity between the west and east coasts of India.

“We will target to enhance throughput at KPCL to 100 MMT by FY25 and double its EBIDTA by FY23. With a vast waterfront and land availability of over 6,700 acres, KPCL is capable of replicating Mundra and would be future ready to handle 500 MMT,” Karan Adani, chief executive officer at APSEZ was quoted as saying.

Shares of APSEZ today ended at Rs 350 per share, down 1 percent from previous close on BSE.

The company already has 10 ports including terminals which represents 24 percent of the country’s total port capacity. In the last few years, APSEZ has largely taken the inorganic growth route to grow its capacity across India, which includes ports such as Dhamra and Kattupalli.

Through its ports, the company is present in bulk, container as well as liquid cargo business.

Adani’s Port Portfolio

• Mundra Port
• Dahej Port
• Hazira Port
• Kattupalli Port
• Dhamra Port
• Vizhimjam Port
• Mormugao Terminal
• Vizag Terminal
• Tuna Terminal                 
• Ennore Terminal